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PETERS AND COMPANY LIMITED 2013 ENERGY CONFERENCE – Western Energy Services Corp.

Western Energy Services Corp. · Sep 11, 2013 · 35 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. PETERS AND COMPANY LIMITED 2013 ENERGY CONFERENCE – Western Energy Services Corp. – slide 1
    Peters & Co. Limited 2013 Energy Conference Toronto, Ontario WRG September 11, 2013
  2. PETERS AND COMPANY LIMITED 2013 ENERGY CONFERENCE – Western Energy Services Corp. – slide 2
    Strategic Growth Acquired IROC Energy Services with Eagle Well Issued a 20-1 Servicing and reverse split on AERO Rental stock and moved Services to the TSX Market Acquired Horizon Capitalization Drilling, Cedar 659 million…
  3. PETERS AND COMPANY LIMITED 2013 ENERGY CONFERENCE – Western Energy Services Corp. – slide 3
    What Has Changed 2012 2013 40 drilling rigs 45 drilling rigs 5 drilling rigs 5 drilling rigs 5 service rigs 65 service rigs 35M rental assets WRG 4
  4. PETERS AND COMPANY LIMITED 2013 ENERGY CONFERENCE – Western Energy Services Corp. – slide 4
    Number of Rigs 0 20 40 60 80 100 120 140 160 180 200 WRG Precision 177 96 Rockwell 89 Nabors 86 Savanna 79 Tervita 69 CWC Eagle 65 55 Essential 19 CASA Royal…
  5. PETERS AND COMPANY LIMITED 2013 ENERGY CONFERENCE – Western Energy Services Corp. – slide 5
    Operations Focus on the Most Robust Resource Plays Legend Geographic Composition of Drilling and Well Servicing Rig Fleets WRG 6
  6. PETERS AND COMPANY LIMITED 2013 ENERGY CONFERENCE – Western Energy Services Corp. – slide 6
    Combining Two Premier Oilfield Service Companies Management Experienced management team with a track record of success Strong systems and processes in place Value Full cycle service provider with unparalleled modern fleet of…
  7. PETERS AND COMPANY LIMITED 2013 ENERGY CONFERENCE – Western Energy Services Corp. – slide 7
    IROC Acquisition Provides critical mass in the well servicing rig business in Canada Entrance into oilfield rentals with size and scale Improved overall positioning with oil focused producers Increases Westerns exposure to the…
  8. PETERS AND COMPANY LIMITED 2013 ENERGY CONFERENCE – Western Energy Services Corp. – slide 8
    Corporate Overview Common shares Basic 73 Million Diluted 78 Million Current share price (as at September 5, 2013) 8.45 52 Week Range 6.40 8.60 Market capitalization (f.d.) 659 Million Net debt 221 Million Enterprise value…
  9. PETERS AND COMPANY LIMITED 2013 ENERGY CONFERENCE – Western Energy Services Corp. – slide 9
    Q2 2013 WRG Consolidated Results Second Quarter YTD Q2 Operating Highlights 2013 2012 % Change 2013 2012 % Change Contract drilling Canadian Operations Rig fleet (end of period) 45 41 10% 45 41 10% Drilling revenue per operating day…
  10. PETERS AND COMPANY LIMITED 2013 ENERGY CONFERENCE – Western Energy Services Corp. – slide 10
    Q2 2013 WRG Consolidated Results (contd) Second Quarter Six Months Ended June 30 Financial Highlights (Thousands CDN) 2013 2012 % Change 2013 2012 % Change Revenue 50,835 44,819 13% 148,841 155,706 (4%) Gross Margin 16,087 14,108…
  11. PETERS AND COMPANY LIMITED 2013 ENERGY CONFERENCE – Western Energy Services Corp. – slide 11
    Q2 2013 WRG Consolidated Results (contd) 2013 Year Ended December 31 Financial Highlights (Thousands CDN) Consensus 2012 2011 2010 Revenue 380,700 308,617 262,519 56,009 Gross Margin 153,300 131,063 114,837 22,902 EBITDA 123,100…
  12. PETERS AND COMPANY LIMITED 2013 ENERGY CONFERENCE – Western Energy Services Corp. – slide 12
    Proven Record of Growth and Profitability 50% 110.0 40% 90.0 30% 70.0 20% 50.0 30.0 10% 10.0 0% (10.0) -10% Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Revenue…
  13. PETERS AND COMPANY LIMITED 2013 ENERGY CONFERENCE – Western Energy Services Corp. – slide 13
    2013 Expected Capital Expenditures Consolidated Expected Total Spend (94 million) Rig Moving Systems Rental Expansion Equipment 5% 7% Mud Pumps 12% Other Expansion Equipment 14% Critical Spare New Rig Builds Equipment…
  14. PETERS AND COMPANY LIMITED 2013 ENERGY CONFERENCE – Western Energy Services Corp. – slide 14
    2013 Budgeted Consolidated Capital Spending Consolidated Capital Spending - Consolidated Capital Spending By Expansion vs. Maintenance & Critical Spares Entity Critical Spares 6% (6 million) Maintenance 20% (19 million)…
  15. PETERS AND COMPANY LIMITED 2013 ENERGY CONFERENCE – Western Energy Services Corp. – slide 15
    High Quality Customer Base Baytex Energy Ltd. 13% Other 31% Canadian Natural Resources Ltd. 11% 150 Customers Progress Energy Canada Ltd. 10% G3 Operating, LLC 4% Husky Energy Inc. Athabasca Oil 9% Corporation Arc…
  16. PETERS AND COMPANY LIMITED 2013 ENERGY CONFERENCE – Western Energy Services Corp. – slide 16
    Canadas 6th Largest Drilling Contractor Corporate Office Field Operations Field Services Calgary Leduc Leduc Alberta Alberta Alberta WRG 17
  17. PETERS AND COMPANY LIMITED 2013 ENERGY CONFERENCE – Western Energy Services Corp. – slide 17
    Western Canada Drilling Rig Depth Capacity Industry Horizon Depth (m) of Rigs % of Fleet of Rigs % of Fleet 760 to 1524 127 15% 1525 to 2270 75 9% 2 5% 2280 to 3049 188 23% 1 2% 390 48% 3 7% 3050 to 3799 261 32% 28 62% 3800…
  18. PETERS AND COMPANY LIMITED 2013 ENERGY CONFERENCE – Western Energy Services Corp. – slide 18
    Leading Deep Driller in the WCSB Construction of two convertible telescopic ELR double drilling rigs is currently underway 100% 4% 9% 13% 90% 28% 26% 12% 29% 80% 26% 70% 8% 11% Percentage of Drilling Fleet 23%…
  19. PETERS AND COMPANY LIMITED 2013 ENERGY CONFERENCE – Western Energy Services Corp. – slide 19
    WCSB Well Licenses Support a Steady Near-Term Outlook Canadian Wells Operating Days (1) Well Licenses by Objective (2) 180,000 4,000 158,427 160,000 145,166 3,500 134,816 Number of Well Licenses... 140,000 124,595 Wells -…
  20. PETERS AND COMPANY LIMITED 2013 ENERGY CONFERENCE – Western Energy Services Corp. – slide 20
    Our Drilling Fleet Advantage Fit for purpose Right load count Move efficiently Adequate hook load (400,000 lbs. +) Ability to rack enough pipe 95% of fleet has top drives Proper mud pumps 1,300 hp (1,000 hp minimum) best pumping…
  21. PETERS AND COMPANY LIMITED 2013 ENERGY CONFERENCE – Western Energy Services Corp. – slide 21
    Drilling Utilization and Day Rates Westerns premium drilling rig fleet has realized above average utilization and industry leading day rates in the WCSB WCSB Utilization Rates (1) WCSB Day Rates (2) 85 79 81 40,000 34,329 33,507…
  22. PETERS AND COMPANY LIMITED 2013 ENERGY CONFERENCE – Western Energy Services Corp. – slide 22
    U.S. Operations Corporate Office Field Operations Field Services Denver Williston El Reno Colorado North Dakota Oklahoma WRG 23
  23. PETERS AND COMPANY LIMITED 2013 ENERGY CONFERENCE – Western Energy Services Corp. – slide 23
    Stoneham Drilling In Q2 2013 Westerns U.S. rigs had utilization averaging 45% (60% including mobilization days) Stoneham has employed the latest technology in designing a safe, efficient and highly versatile fleet of drilling rigs…
  24. PETERS AND COMPANY LIMITED 2013 ENERGY CONFERENCE – Western Energy Services Corp. – slide 24
    Canadas 7th Largest Well Servicing Contractor Corporate Office Field Operations Calgary Red Deer Lloydminster Alberta Alberta Alberta Grande Prairie Estevan Alberta Saskatchewan WRG 25
  25. PETERS AND COMPANY LIMITED 2013 ENERGY CONFERENCE – Western Energy Services Corp. – slide 25
    Eagle Well Servicing Presently operating 65 newly built service rigs in Western Canada Operations centered in Red Deer, Lloydminster, Estevan and Grande Prairie Growth opportunities remain as we strive to achieve optimum operating…
  26. PETERS AND COMPANY LIMITED 2013 ENERGY CONFERENCE – Western Energy Services Corp. – slide 26
    Utilization and Day Rates Eagles well servicing rigs have realized above average utilization, signifying the quality of the respective fleets and operations Canadian Well Servicing Rig Utilization Rates Canadian Well Servicing Rig…
  27. PETERS AND COMPANY LIMITED 2013 ENERGY CONFERENCE – Western Energy Services Corp. – slide 27
    Our Well Service Rigs WRG 28
  28. PETERS AND COMPANY LIMITED 2013 ENERGY CONFERENCE – Western Energy Services Corp. – slide 28
    New Age: Production Services Completion programs longer and more complex Service rig portion of completion is now 8 or 9 days versus 3 or 4 in the past on both oil and liquids rich wells More pipe means longer trips Productions…
  29. PETERS AND COMPANY LIMITED 2013 ENERGY CONFERENCE – Western Energy Services Corp. – slide 29
    Well Positioned for Rental Business Growth Corporate Office Field Operations Field Operations Calgary Red Deer Grande Prairie Alberta Alberta Alberta WRG 30
  30. PETERS AND COMPANY LIMITED 2013 ENERGY CONFERENCE – Western Energy Services Corp. – slide 30
    AERO Rental Services AERO Rental Services provides surface pressure control assets, frac heads, power swivels and handling equipment Experienced team of pressure control professionals Replacement cost of assets - 35 million…
  31. PETERS AND COMPANY LIMITED 2013 ENERGY CONFERENCE – Western Energy Services Corp. – slide 31
    AERO Rental Services WRG 32
  32. PETERS AND COMPANY LIMITED 2013 ENERGY CONFERENCE – Western Energy Services Corp. – slide 32
    Oil and Gas a Changing Game Rapid move to oil based activity in WCSB Technology applied to existing fields creating risk reduced development at higher production levels Demand and supply of appropriate assets still not balanced in…
  33. PETERS AND COMPANY LIMITED 2013 ENERGY CONFERENCE – Western Energy Services Corp. – slide 33
    Vision and Strategy Westerns key initiatives over the next three years: Continue to grow a superior fleet of contract drilling and well servicing rigs through acquisitions and organic growth Increase our presence in the United…
  34. PETERS AND COMPANY LIMITED 2013 ENERGY CONFERENCE – Western Energy Services Corp. – slide 34
    Westerns Formula for Growth Focused Management Team Experienced management team has history of prudent approach to growth Focused Assets Modern ELR deep drilling rig fleet and new design service rigs Focused on Customers…
  35. PETERS AND COMPANY LIMITED 2013 ENERGY CONFERENCE – Western Energy Services Corp. – slide 35
    Western Energy Services Corp. For further information please contact: Dale E. Tremblay Alex MacAusland Jeffrey K. Bowers Email: dtremblaywesc.ca Email: amacauslandwesc.ca Email: jbowerswesc.ca Office: 403-984-5929 Office:…

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